2018 Q2 Form 10-Q Financial Statement

#000149090618000048 Filed on August 09, 2018

View on sec.gov

Income Statement

Concept 2018 Q2 2017 Q2
Revenue $82.16M $79.63M
YoY Change 3.18% 5.43%
Cost Of Revenue
YoY Change
Gross Profit
YoY Change
Gross Profit Margin
Selling, General & Admin
YoY Change
% of Gross Profit
Research & Development $3.363M $2.922M
YoY Change 15.09% 7.58%
% of Gross Profit
Depreciation & Amortization $2.100M $2.000M
YoY Change 5.0% 11.11%
% of Gross Profit
Operating Expenses $3.363M $2.922M
YoY Change 15.09% 7.58%
Operating Profit
YoY Change
Interest Expense $32.73M $30.27M
YoY Change 8.13% 9.67%
% of Operating Profit
Other Income/Expense, Net
YoY Change
Pretax Income $30.35M $32.18M
YoY Change -5.7% 7.15%
Income Tax $7.974M $10.81M
% Of Pretax Income 26.28% 33.59%
Net Earnings $22.37M $21.37M
YoY Change 4.69% 3.99%
Net Earnings / Revenue 27.23% 26.84%
Basic Earnings Per Share $0.17 $0.16
Diluted Earnings Per Share $0.17 $0.16
COMMON SHARES
Basic Shares Outstanding 134.5M shares 134.3M shares
Diluted Shares Outstanding 134.5M shares 134.4M shares

Balance Sheet

Concept 2018 Q2 2017 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments
YoY Change
Cash & Equivalents $182.1M $130.2M
Short-Term Investments
Other Short-Term Assets
YoY Change
Inventory
Prepaid Expenses
Receivables
Other Receivables
Total Short-Term Assets
YoY Change
LONG-TERM ASSETS
Property, Plant & Equipment $85.60M $83.85M
YoY Change 2.09% 2.35%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets
YoY Change
Total Long-Term Assets
YoY Change
TOTAL ASSETS
Total Short-Term Assets
Total Long-Term Assets
Total Assets $9.049B $9.103B
YoY Change -0.6% -1.5%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $51.00M $38.00M
YoY Change 34.21% -5.0%
Accrued Expenses
YoY Change
Deferred Revenue
YoY Change
Short-Term Debt $100.0M $200.0M
YoY Change -50.0% 0.0%
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $51.00M $39.00M
YoY Change 30.77% -2.5%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00
YoY Change
Other Long-Term Liabilities $40.00M $40.00M
YoY Change 0.0% 5.26%
Total Long-Term Liabilities $40.00M $40.00M
YoY Change 0.0% 5.26%
TOTAL LIABILITIES
Total Short-Term Liabilities $51.00M $39.00M
Total Long-Term Liabilities $40.00M $40.00M
Total Liabilities $7.707B $7.744B
YoY Change -0.48% -1.48%
SHAREHOLDERS EQUITY
Retained Earnings $204.6M $225.4M
YoY Change -9.24% -12.99%
Common Stock $1.170B $1.168B
YoY Change 0.12% 1.15%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $1.341B $1.359B
YoY Change
Total Liabilities & Shareholders Equity $9.049B $9.103B
YoY Change -0.6% -1.5%

Cashflow Statement

Concept 2018 Q2 2017 Q2
OPERATING ACTIVITIES
Net Income $22.37M $21.37M
YoY Change 4.69% 3.99%
Depreciation, Depletion And Amortization $2.100M $2.000M
YoY Change 5.0% 11.11%
Cash From Operating Activities $23.30M $18.60M
YoY Change 25.27% 1.09%
INVESTING ACTIVITIES
Capital Expenditures -$2.900M -$2.500M
YoY Change 16.0% -13.79%
Acquisitions
YoY Change
Other Investing Activities $112.2M $35.00M
YoY Change 220.57% 33.59%
Cash From Investing Activities $109.3M $32.50M
YoY Change 236.31% 38.89%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -91.20M -161.5M
YoY Change -43.53% 74.03%
NET CHANGE
Cash From Operating Activities 23.30M 18.60M
Cash From Investing Activities 109.3M 32.50M
Cash From Financing Activities -91.20M -161.5M
Net Change In Cash 41.40M -110.4M
YoY Change -137.5% 116.47%
FREE CASH FLOW
Cash From Operating Activities $23.30M $18.60M
Capital Expenditures -$2.900M -$2.500M
Free Cash Flow $26.20M $21.10M
YoY Change 24.17% -0.94%

Facts In Submission

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us-gaap Financing Receivable Modifications Pre Modification Recorded Investment2
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137000 USD
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FinancingReceivableModificationsPreModificationRecordedInvestment2
304000 USD
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us-gaap Financing Receivable Modifications Subsequent Default Number Of Contracts1
FinancingReceivableModificationsSubsequentDefaultNumberOfContracts1
53 contract
CY2018Q2 us-gaap Financing Receivable Modifications Subsequent Default Number Of Contracts1
FinancingReceivableModificationsSubsequentDefaultNumberOfContracts1
1 contract
us-gaap Financing Receivable Modifications Subsequent Default Number Of Contracts1
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FinancingReceivableModificationsSubsequentDefaultRecordedInvestment1
2005000 USD
us-gaap Financing Receivable Modifications Subsequent Default Recorded Investment1
FinancingReceivableModificationsSubsequentDefaultRecordedInvestment1
4391000 USD
CY2018Q2 us-gaap Financing Receivable Modifications Subsequent Default Recorded Investment1
FinancingReceivableModificationsSubsequentDefaultRecordedInvestment1
34000 USD
us-gaap Financing Receivable Modifications Subsequent Default Recorded Investment1
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2585000 USD
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16645000 USD
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CY2018Q2 us-gaap Held To Maturity Securities Accumulated Unrecognized Holding Gain
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3718000 USD
CY2018Q2 us-gaap Held To Maturity Securities Continuous Unrealized Loss Position12 Months Or Longer Accumulated Loss
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4314000 USD
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218615000 USD
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202554000 USD
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255472000 USD
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us-gaap Impaired Financing Receivable Average Recorded Investment
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31659000 USD
us-gaap Impaired Financing Receivable Average Recorded Investment
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35777000 USD
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471000 USD
us-gaap Impaired Financing Receivable Interest Income Accrual Method
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1432000 USD
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318000 USD
us-gaap Impaired Financing Receivable Interest Income Accrual Method
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1044000 USD
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38482000 USD
CY2018Q2 us-gaap Impaired Financing Receivable With No Related Allowance Average Recorded Investment
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31659000 USD
us-gaap Impaired Financing Receivable With No Related Allowance Average Recorded Investment
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35777000 USD
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323000 USD
us-gaap Impaired Financing Receivable With No Related Allowance Interest Income Accrual Method
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963000 USD
CY2018Q2 us-gaap Impaired Financing Receivable With No Related Allowance Interest Income Accrual Method
ImpairedFinancingReceivableWithNoRelatedAllowanceInterestIncomeAccrualMethod
318000 USD
us-gaap Impaired Financing Receivable With No Related Allowance Interest Income Accrual Method
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1044000 USD
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us-gaap Impaired Financing Receivable With Related Allowance Average Recorded Investment
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16923000 USD
CY2018Q2 us-gaap Impaired Financing Receivable With Related Allowance Average Recorded Investment
ImpairedFinancingReceivableWithRelatedAllowanceAverageRecordedInvestment
0 USD
CY2018Q2 us-gaap Impaired Financing Receivable Recorded Investment
ImpairedFinancingReceivableRecordedInvestment
30164000 USD
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44351000 USD
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32153000 USD
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148000 USD
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469000 USD
CY2018Q2 us-gaap Impaired Financing Receivable With Related Allowance Interest Income Accrual Method
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0 USD
us-gaap Impaired Financing Receivable With Related Allowance Interest Income Accrual Method
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0 USD
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0 USD
us-gaap Impairment Of Investments
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0 USD
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us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
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us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
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us-gaap Increase Decrease Cash Collateral From Counterparties
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0 USD
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us-gaap Increase Decrease In Accounts Payable And Accrued Liabilities
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us-gaap Increase Decrease In Accrued Income Taxes Payable
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1672000 USD
us-gaap Increase Decrease In Accrued Income Taxes Payable
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us-gaap Increase Decrease In Advance Payments By Borrowers For Taxes And Insurance
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0 USD
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6038000 USD
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13215000 USD
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17884000 USD
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50772000 USD
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18501000 USD
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55190000 USD
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us-gaap Interest Expense Securities Sold Under Agreements To Repurchase
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us-gaap Interest Income Securities Tax Exempt
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us-gaap Interest Income Securities Taxable
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us-gaap Net Cash Provided By Used In Financing Activities
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us-gaap Other Comprehensive Income Derivatives Qualifying As Hedges Net Of Tax Portion Attributable To Parent
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us-gaap Other Comprehensive Income Derivatives Qualifying As Hedges Tax Portion Attributable To Parent
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us-gaap Other Comprehensive Income Loss Available For Sale Securities Adjustment Net Of Tax
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CY2018Q2 us-gaap Other Noninterest Expense
OtherNoninterestExpense
602000 USD
us-gaap Other Noninterest Expense
OtherNoninterestExpense
2368000 USD
us-gaap Payments For Origination Of Mortgage Loans Held For Sale
PaymentsForOriginationOfMortgageLoansHeldForSale
0 USD
us-gaap Payments For Origination Of Mortgage Loans Held For Sale
PaymentsForOriginationOfMortgageLoansHeldForSale
777000 USD
us-gaap Payments For Proceeds From Loans And Leases
PaymentsForProceedsFromLoansAndLeases
284728000 USD
us-gaap Payments For Proceeds From Loans And Leases
PaymentsForProceedsFromLoansAndLeases
61681000 USD
us-gaap Payments Of Dividends
PaymentsOfDividends
106552000 USD
us-gaap Payments Of Dividends
PaymentsOfDividends
106882000 USD
us-gaap Payments To Acquire Available For Sale Securities
PaymentsToAcquireAvailableForSaleSecurities
37425000 USD
us-gaap Payments To Acquire Available For Sale Securities
PaymentsToAcquireAvailableForSaleSecurities
312285000 USD
us-gaap Payments To Acquire Federal Home Loan Bank Stock
PaymentsToAcquireFederalHomeLoanBankStock
274316000 USD
us-gaap Payments To Acquire Federal Home Loan Bank Stock
PaymentsToAcquireFederalHomeLoanBankStock
185871000 USD
us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
6509000 USD
us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
7062000 USD
us-gaap Provision For Loan And Lease Losses
ProvisionForLoanAndLeaseLosses
0 USD
CY2017Q3 us-gaap Pledged Financial Instruments Not Separately Reported Securities For Other Debt Facilities
PledgedFinancialInstrumentsNotSeparatelyReportedSecuritiesForOtherDebtFacilities
11769000 USD
CY2018Q2 us-gaap Pledged Financial Instruments Not Separately Reported Securities For Other Debt Facilities
PledgedFinancialInstrumentsNotSeparatelyReportedSecuritiesForOtherDebtFacilities
7959000 USD
CY2017Q3 us-gaap Pledged Financial Instruments Not Separately Reported Securities For Repurchase Agreements
PledgedFinancialInstrumentsNotSeparatelyReportedSecuritiesForRepurchaseAgreements
214298000 USD
CY2018Q2 us-gaap Pledged Financial Instruments Not Separately Reported Securities For Repurchase Agreements
PledgedFinancialInstrumentsNotSeparatelyReportedSecuritiesForRepurchaseAgreements
108546000 USD
CY2017Q3 us-gaap Pledged Financial Instruments Not Separately Reported Securities Pledged
PledgedFinancialInstrumentsNotSeparatelyReportedSecuritiesPledged
726060000 USD
CY2018Q2 us-gaap Pledged Financial Instruments Not Separately Reported Securities Pledged
PledgedFinancialInstrumentsNotSeparatelyReportedSecuritiesPledged
571226000 USD
CY2017Q3 us-gaap Preferred Stock Par Or Stated Value Per Share
PreferredStockParOrStatedValuePerShare
0.01
CY2018Q2 us-gaap Preferred Stock Par Or Stated Value Per Share
PreferredStockParOrStatedValuePerShare
0.01
CY2017Q3 us-gaap Preferred Stock Shares Authorized
PreferredStockSharesAuthorized
100000000 shares
CY2018Q2 us-gaap Preferred Stock Shares Authorized
PreferredStockSharesAuthorized
100000000 shares
CY2017Q3 us-gaap Preferred Stock Shares Issued
PreferredStockSharesIssued
0 shares
CY2018Q2 us-gaap Preferred Stock Shares Issued
PreferredStockSharesIssued
0 shares
CY2017Q3 us-gaap Preferred Stock Shares Outstanding
PreferredStockSharesOutstanding
0 shares
CY2018Q2 us-gaap Preferred Stock Shares Outstanding
PreferredStockSharesOutstanding
0 shares
CY2017Q3 us-gaap Preferred Stock Value
PreferredStockValue
0 USD
CY2018Q2 us-gaap Preferred Stock Value
PreferredStockValue
0 USD
us-gaap Proceeds From Federal Home Loan Bank Borrowings
ProceedsFromFederalHomeLoanBankBorrowings
2100100000 USD
us-gaap Proceeds From Federal Home Loan Bank Borrowings
ProceedsFromFederalHomeLoanBankBorrowings
14900100000 USD
us-gaap Proceeds From Maturities Prepayments And Calls Of Available For Sale Securities
ProceedsFromMaturitiesPrepaymentsAndCallsOfAvailableForSaleSecurities
108170000 USD
us-gaap Proceeds From Maturities Prepayments And Calls Of Available For Sale Securities
ProceedsFromMaturitiesPrepaymentsAndCallsOfAvailableForSaleSecurities
164446000 USD
us-gaap Proceeds From Maturities Prepayments And Calls Of Held To Maturity Securities
ProceedsFromMaturitiesPrepaymentsAndCallsOfHeldToMaturitySecurities
206378000 USD
us-gaap Proceeds From Maturities Prepayments And Calls Of Held To Maturity Securities
ProceedsFromMaturitiesPrepaymentsAndCallsOfHeldToMaturitySecurities
160792000 USD
us-gaap Proceeds From Repayments Of Short Term Debt
ProceedsFromRepaymentsOfShortTermDebt
200000000 USD
us-gaap Proceeds From Repayments Of Short Term Debt
ProceedsFromRepaymentsOfShortTermDebt
0 USD
us-gaap Proceeds From Sale Of Available For Sale Securities
ProceedsFromSaleOfAvailableForSaleSecurities
0 USD
us-gaap Proceeds From Sale Of Available For Sale Securities
ProceedsFromSaleOfAvailableForSaleSecurities
2078000 USD
us-gaap Proceeds From Sale Of Federal Home Loan Bank Stock
ProceedsFromSaleOfFederalHomeLoanBankStock
292400000 USD
us-gaap Proceeds From Sale Of Federal Home Loan Bank Stock
ProceedsFromSaleOfFederalHomeLoanBankStock
195246000 USD
us-gaap Proceeds From Sale Of Foreclosed Assets
ProceedsFromSaleOfForeclosedAssets
4297000 USD
us-gaap Proceeds From Sale Of Foreclosed Assets
ProceedsFromSaleOfForeclosedAssets
2161000 USD
us-gaap Proceeds From Sale Of Mortgage Loans Held For Sale
ProceedsFromSaleOfMortgageLoansHeldForSale
0 USD
us-gaap Proceeds From Sale Of Mortgage Loans Held For Sale
ProceedsFromSaleOfMortgageLoansHeldForSale
16423000 USD
us-gaap Proceeds From Stock Options Exercised
ProceedsFromStockOptionsExercised
8642000 USD
us-gaap Proceeds From Stock Options Exercised
ProceedsFromStockOptionsExercised
249000 USD
us-gaap Profit Loss
ProfitLoss
63535000 USD
us-gaap Profit Loss
ProfitLoss
77538000 USD
CY2017Q3 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
84818000 USD
CY2018Q2 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
85604000 USD
CY2017Q2 us-gaap Provision For Loan And Lease Losses
ProvisionForLoanAndLeaseLosses
0 USD
CY2018Q2 us-gaap Provision For Loan And Lease Losses
ProvisionForLoanAndLeaseLosses
0 USD
us-gaap Provision For Loan And Lease Losses
ProvisionForLoanAndLeaseLosses
0 USD
CY2017Q2 us-gaap Provision For Loan Lease And Other Losses
ProvisionForLoanLeaseAndOtherLosses
0 USD
us-gaap Provision For Loan Lease And Other Losses
ProvisionForLoanLeaseAndOtherLosses
0 USD
CY2018Q2 us-gaap Provision For Loan Lease And Other Losses
ProvisionForLoanLeaseAndOtherLosses
0 USD
us-gaap Provision For Loan Lease And Other Losses
ProvisionForLoanLeaseAndOtherLosses
0 USD
CY2017Q3 us-gaap Real Estate Acquired Through Foreclosure
RealEstateAcquiredThroughForeclosure
1400000 USD
CY2018Q2 us-gaap Real Estate Acquired Through Foreclosure
RealEstateAcquiredThroughForeclosure
897000 USD
us-gaap Repayments Of Federal Home Loan Bank Borrowings
RepaymentsOfFederalHomeLoanBankBorrowings
2500100000 USD
us-gaap Repayments Of Federal Home Loan Bank Borrowings
RepaymentsOfFederalHomeLoanBankBorrowings
15000100000 USD
CY2017Q3 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
234640000 USD
CY2018Q2 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
204610000 USD
CY2017Q3 us-gaap Securities Sold Under Agreements To Repurchase
SecuritiesSoldUnderAgreementsToRepurchase
200000000 USD
CY2017Q3 us-gaap Securities Sold Under Agreements To Repurchase
SecuritiesSoldUnderAgreementsToRepurchase
200000000 USD
CY2018Q2 us-gaap Securities Sold Under Agreements To Repurchase
SecuritiesSoldUnderAgreementsToRepurchase
100000000 USD
CY2018Q2 us-gaap Securities Sold Under Agreements To Repurchase
SecuritiesSoldUnderAgreementsToRepurchase
100000000 USD
us-gaap Share Based Compensation
ShareBasedCompensation
419000 USD
us-gaap Share Based Compensation
ShareBasedCompensation
280000 USD
us-gaap Stock Issued During Period Value Employee Stock Ownership Plan
StockIssuedDuringPeriodValueEmployeeStockOwnershipPlan
1860000 USD
us-gaap Stock Issued During Period Value Employee Stock Ownership Plan
StockIssuedDuringPeriodValueEmployeeStockOwnershipPlan
1649000 USD
us-gaap Stock Issued During Period Value Restricted Stock Award Net Of Forfeitures
StockIssuedDuringPeriodValueRestrictedStockAwardNetOfForfeitures
51000 USD
us-gaap Stock Issued During Period Value Stock Options Exercised
StockIssuedDuringPeriodValueStockOptionsExercised
8969000 USD
us-gaap Stock Issued During Period Value Stock Options Exercised
StockIssuedDuringPeriodValueStockOptionsExercised
249000 USD
CY2016Q3 us-gaap Stockholders Equity
StockholdersEquity
1392964000 USD
CY2017Q2 us-gaap Stockholders Equity
StockholdersEquity
1358986000 USD
CY2017Q3 us-gaap Stockholders Equity
StockholdersEquity
1368313000 USD
CY2018Q2 us-gaap Stockholders Equity
StockholdersEquity
1341325000 USD
CY2017Q2 us-gaap Supplies And Postage Expense
SuppliesAndPostageExpense
492000 USD
us-gaap Supplies And Postage Expense
SuppliesAndPostageExpense
1470000 USD
CY2018Q2 us-gaap Supplies And Postage Expense
SuppliesAndPostageExpense
455000 USD
us-gaap Supplies And Postage Expense
SuppliesAndPostageExpense
1339000 USD
us-gaap Transfer Of Portfolio Loans And Leases To Held For Sale1
TransferOfPortfolioLoansAndLeasesToHeldForSale1
0 USD
us-gaap Transfer Of Portfolio Loans And Leases To Held For Sale1
TransferOfPortfolioLoansAndLeasesToHeldForSale1
15814000 USD
CY2017Q2 us-gaap Undistributed Earnings Loss Allocated To Participating Securities Basic
UndistributedEarningsLossAllocatedToParticipatingSecuritiesBasic
11000 USD
us-gaap Undistributed Earnings Loss Allocated To Participating Securities Basic
UndistributedEarningsLossAllocatedToParticipatingSecuritiesBasic
36000 USD
CY2018Q2 us-gaap Undistributed Earnings Loss Allocated To Participating Securities Basic
UndistributedEarningsLossAllocatedToParticipatingSecuritiesBasic
9000 USD
us-gaap Undistributed Earnings Loss Allocated To Participating Securities Basic
UndistributedEarningsLossAllocatedToParticipatingSecuritiesBasic
32000 USD
CY2017Q3 us-gaap Unearned Esop Shares
UnearnedESOPShares
37995000 USD
CY2018Q2 us-gaap Unearned Esop Shares
UnearnedESOPShares
36756000 USD
CY2017Q2 us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
106080 shares
us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
185477 shares
CY2018Q2 us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
45713 shares
us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
62275 shares
CY2017Q2 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
134359770 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
134189758 shares
CY2018Q2 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
134529953 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
134490555 shares
CY2017Q2 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
134253690 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
134004281 shares
CY2018Q2 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
134484240 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
134428280 shares
us-gaap Repurchase Agreements Securities Lending Transactions And Repurchase To Maturity Transactions Accounted For As Secured Borrowings Description Of Potential Risks
RepurchaseAgreementsSecuritiesLendingTransactionsAndRepurchaseToMaturityTransactionsAccountedForAsSecuredBorrowingsDescriptionOfPotentialRisks
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Securities are delivered to the party with whom each transaction is executed and the party agrees to resell the same securities to the Bank at the maturity of the agreement. The Bank retains the right to substitute similar securities throughout the terms of the agreements. The repurchase agreements and collateral are subject to valuation at current market levels and the Bank may ask for the return of excess collateral or be required to post additional collateral due to changes in the market values of these items. The Bank may also be required to post additional collateral as a result of principal payments received on the securities pledged.</font></div></div>

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